Wayfair Q3 2026 earnings review

Revenue rose 9.7% and adjusted EPS beat LSEG by 17.7%, a clear beat.

Wayfair · Q3 2026 · Published Nov 4, 2026 · By DeepCell AI · Sources

Wayfair Q3 2026 earnings review

Quarter ended September 30, 2026

For information only, not investment advice. No rating or price target.

Built with DeepCell / deepcell.net

1 · Wayfair (W) Q3 2026 earnings review

Revenue rose 9.7% and adjusted EPS beat LSEG by 17.7%, a clear beat

  1. 1.Net revenue rose 9.7% to $3.42B, 1.2% above LSEG
  2. 2.Adjusted EPS of $0.93 beat the LSEG estimate of $0.79
  3. 3.U.S. revenue rose 11.4%, while International fell 2.3%
  4. 4.Adjusted EBITDA rose 13.5% to $236M, a 6.9% margin
  5. 5.Orders rose 12.2%; Q4 guide: high single-digit growth, 6% to 7% EBITDA margin
  6. 6.Shares closed at $111.32 on Nov 3 and traded at $125.01 intraday on Nov 4

Note: The Nov 4 price is intraday at 12:34 PM ET, not a close. Q4 guidance is from the call; no Q4 consensus was found.Source: Wayfair Form 8-K, Nov 4, 2026; Wayfair earnings call, Nov 4, 2026; LSEG via CNBC; Yahoo Finance prices, Nov 3–4, 2026

2

2 · Executive summary

Q3 adjusted EPS beat LSEG by 17.7% and revenue beat by 1.2%

Q3 2026 results vs. consensus (LSEG via CNBC; Investing.com, Nov 4, 2026)

MetricActualConsensusVarianceResult
Net revenue (LSEG)$3,420M$3,380M+$40M / +1.2%Beat
Adjusted EPS (LSEG)$0.93$0.79+$0.14 / +17.7%Beat
Net revenue (Investing.com)$3,420M$3,370M+$50M / +1.5%Beat
Adjusted EPS (Investing.com)$0.93$0.79+$0.14 / +17.7%Beat

Share price, Nov 3–4, 2026 (Yahoo Finance)

Wayfair (NYSE)Nov 3 closeNov 4 intradayIntraday change
W$111.32$125.01+12.3%

Nov 4 price is intraday at 12:34 PM ET, not a close.

Note: Wayfair reports adjusted diluted EPS; GAAP diluted EPS was $0.45. Both consensus sources agree.Source: Wayfair Form 8-K, Nov 4, 2026; LSEG via CNBC, Nov 4, 2026; Investing.com, Nov 4, 2026; Yahoo Finance prices

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3 · Q3 results vs. consensus

Q4 EBITDA margin guidance midpoint of 6.5% sits 40 bps below Q3, a cautious outlook

Q4 2026 outlook (CFO on the earnings call, Nov 4, 2026)

MetricLowHighMidpointvs. Q3 2026
Adjusted EBITDA margin6.0%7.0%6.5%-40 bps
Gross margin29.5%30.5%30.0%+41 bps
Advertising, % of revenue10.5%11.5%11.0%+112 bps
SOTG&A excl. equity pay ($M)$360M$370M$365M-$13M
Capital expenditures ($M)$70M$80M$75M+$13M

Other Q4 2026 outlook items

MetricOutlook
Net revenue growthHigh single digits
Equity-based compensation ($M)$60M to $70M
Net interest expense ($M)About $42M

Note: SOTG&A is selling, operations, technology, general and administrative. Gross margin guided to the lower end. No Q4 consensus was found, so it is not scored.Source: Wayfair earnings call, Nov 4, 2026; Wayfair Form 8-K, Nov 4, 2026; analysis of company data

4

4 · Q4 2026 outlook

Revenue rose 9.7% and Adjusted EBITDA rose 13.5%, a strong quarter

  1. Orders drove growthOrders delivered rose 12.2%, while average order value fell 1.9%.
  2. Operating income nearly tripledGAAP income from operations rose to $106M from $38M.
  3. Net income turned positiveGAAP net income was $62M, against a $99M loss a year ago.

Key figures

$M unless notedQ3 2025Q3 2026YoY
Net revenue$3,117M$3,420M9.7%
Gross profit$934M$1,012M8.4%
Contribution Profit$493M$550M11.6%
Adjusted EBITDA$208M$236M13.5%
Adjusted diluted EPS$0.70$0.9332.9%

Note: Contribution Profit and Adjusted EBITDA are Wayfair’s own non-GAAP measures.Source: Wayfair Form 8-K, Nov 4, 2026; analysis of company data

5

5 · Q3 key financials

U.S. Adjusted EBITDA rose 24.9%, while International lost $25M

Net revenue and Adjusted EBITDA by segment

$M unless noted, Q3 2026

SegmentRevenueRevenue YoYAdj. EBITDAEBITDA margin
U.S.$3,040M+11.4%$261M8.6%
International$380M-2.3%($25M)(6.6%)
Total$3,420M+9.7%$236M6.9%
International fell 1.8% in constant currency“Q3 was our strongest quarter of growth in the post-pandemic period.” Niraj Shah, CEO

Note: Segment Adjusted EBITDA is as reported in the segment note of the release.Source: Wayfair Form 8-K, Nov 4, 2026; analysis of company data

6

6 · Segment results

7 · Revenue bridge

8 · Customers and orders

Net income swung to $62M from a $99M loss, a clean turn

GAAP net income bridge

$M, Q3 2025 to Q3 2026

$M · Q3 2025: -$99M$M · Operating income: $68M$M · Interest: -$11M$M · Other income: $6M$M · Debt loss: $99M$M · Income tax: -$1M$M · Q3 2026: $62MQ3 2025OperatingincomeInterestOther incomeDebt lossIncome taxQ3 2026-$150M-$100M$0M$100M$150M-$99M$68M-$11M$6M$99M-$1M$62M
Q3 2025 had a $99M loss on debt extinguishment

Note: Operating income added $68M; higher net interest expense took $11M.Source: Wayfair Form 8-K, Nov 4, 2026; analysis of company data

9

9 · Net income bridge

Contribution margin rose 27 bps to 16.1%, a modest gain

Margins to net revenue

%, Q3 2025 vs. Q3 2026

Gross margin · Q3 2025: 30.0%Gross margin · Q3 2026: 29.6%Contribution margin · Q3 2025: 15.8%Contribution margin · Q3 2026: 16.1%Adjusted EBITDA margin · Q3 2025: 6.7%Adjusted EBITDA margin · Q3 2026: 6.9%Q3 2025Q3 20260%10%20%30%40%30.0%29.6%15.8%16.1%6.7%6.9%
Gross margin slipped 37 bps to 29.6%

Note: Contribution margin is Adjusted Gross Profit less customer service, merchant fees and advertising.Source: Wayfair Form 8-K, Nov 4, 2026; analysis of company data

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10 · Margin analysis

Free cash flow rose 46.2% to $136M, a strong cash quarter

Operating cash flow to free cash flow

$M, Q3 2026

$M · Operating cash flow: $198M$M · Property, equipment: -$30M$M · Site, software: -$32M$M · Free cash flow: $136MOperating cashflowProperty,equipmentSite, softwareFree cash flow$0M$50M$100M$150M$200M$250M$198M-$30M-$32M$136M
FCF was 58% of Adjusted EBITDA

Note: FCF is operating cash flow less property, equipment, site and software spending, as Wayfair defines it.Source: Wayfair Form 8-K, Nov 4, 2026; analysis of company data

11

11 · Free cash flow

SOTG&A fell to 12.9% of revenue from 14.3%, good operating leverage

Operating expense lines to net revenue

%, Q3 2025 vs. Q3 2026

Customer service, fees · Q3 2025: 3.8%Customer service, fees · Q3 2026: 3.7%Advertising · Q3 2025: 10.6%Advertising · Q3 2026: 9.9%SOTG&A · Q3 2025: 14.3%SOTG&A · Q3 2026: 12.9%Q3 2025Q3 20260%5%10%15%3.8%3.7%10.6%9.9%14.3%12.9%
Advertising fell 70 bps to 9.9% of revenue

Note: SOTG&A is selling, operations, technology, general and administrative expense, GAAP basis.Source: Wayfair Form 8-K, Nov 4, 2026; analysis of company data

12

12 · Operating cost ratios

Long-term debt fell $661M to $2,572M, a cleaner balance sheet

Cash and debt

$M, Dec 31, 2025 vs. Sep 30, 2026

$MDec 31, 2025Sep 30, 2026
Cash and short-term investments$1,542M$1,098M
Long-term debt$3,233M$2,572M
Long-term debt less cash$1,691M$1,474M
Total stockholders’ deficit($2,782M)($2,804M)
Cash and short-term investments fell by $444M

Note: Total liquidity was about $1.5B including the undrawn revolver. Debt excludes its current portion.Source: Wayfair Form 8-K, Nov 4, 2026; analysis of company data

13

13 · Balance sheet and debt

Q4 guidance assumes a 6% to 7% EBITDA margin, a narrow cushion

Indicator
What to watch
Implication
Latest reading
International
Segment losses
Q3 segment EBITDA of ($25M)
-1.8% constant currency growth
Average order value
Revenue per order
Growth relies on orders
AOV -1.9% YoY
Advertising spend
EBITDA margin
Guided to 10.5% to 11.5% of revenue
9.9% in Q3
Gross margin
Pricing and mix
Guided to the lower part of 29.5%–30.5%
29.6% in Q3

Note: These are analytical watch points, not company targets.Source: Wayfair Form 8-K, Nov 4, 2026; Wayfair earnings call, Nov 4, 2026; analysis of company data

14

14 · Key risks to guidance

Appendix: customer and order detail

ClaimEvidenceCalculation
Active customers rose21.2M to 22.2MLast twelve months
Repeat customer orders rose11.4% to 8.8MKey highlights
Orders placed via mobile rose63.0% to 64.4%Share of total orders
LTM revenue per active customer rose$578 to $596Key financial metrics
Orders delivered rose9.8M to 11.0MKey financial metrics
Average order value fell$317 to $311Key financial metrics

Source: Wayfair Form 8-K, Nov 4, 2026; analysis of company data

15

15 · Appendix: Customer metrics

Appendix: profit and non-GAAP detail

ClaimEvidenceCalculation
GAAP operating margin rose1.2% to 3.1%Income from operations to revenue
Equity-based compensation fell$92M to $66MIncluding related taxes
Net interest expense rose$31M to $42MStatements of operations
Adjusted net income rose$110M to $133MNon-GAAP reconciliation
GAAP diluted EPS turned positive($0.76) to $0.45Statements of operations
Adjusted Gross Profit rose$937M to $1,013MNon-GAAP reconciliation

Source: Wayfair Form 8-K, Nov 4, 2026; analysis of company data

16

16 · Appendix: Profit detail

Appendix: segment revenue and profit detail

ClaimEvidenceCalculation
U.S. net revenue rose$2,728M to $3,040MSegment information
International net revenue fell$389M to $380MSegment information
U.S. Adjusted EBITDA rose$209M to $261MSegment information
International Adjusted EBITDA fell($1M) to ($25M)Segment information
U.S. Adjusted EBITDA margin rose7.7% to 8.6%Segment EBITDA to revenue
International constant currency growth-1.8%Key highlights

Source: Wayfair Form 8-K, Nov 4, 2026; analysis of company data

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17 · Appendix: Segment detail

Appendix: capital return and share detail

ClaimEvidenceCalculation
Share repurchases, 9M 2026$60MStatements of cash flows
Diluted shares rose130M to 138MGAAP diluted weighted average
Adjusted diluted shares fell156M to 143MNon-GAAP share count
Total liquidityAbout $1.50BCash, investments and revolver

Source: Wayfair Form 8-K, Nov 4, 2026; analysis of company data

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18 · Appendix: Capital and shares

Appendix: operating expense and Adjusted EBITDA detail

GAAP operating expenses, $M and YoY %

$M unless notedQ3 2025Q3 2026YoY
Customer service and merchant fees$118M$127M7.6%
Advertising$330M$338M2.4%
SOTG&A$445M$441M(0.9%)
Total operating expenses$896M$906M

Net income to Adjusted EBITDA, $M

$MQ3 2025Q3 2026
Net income (loss)($99M)$62M
Depreciation and amortization$75M$64M
Equity-based compensation$92M$66M
Loss on debt extinguishment$99M$0M
Adjusted EBITDA$208M$236M

Note: SOTG&A is selling, operations, technology, general and administrative. Other EBITDA items are interest, other income, taxes and restructuring.Source: Wayfair Form 8-K, Nov 4, 2026; analysis of company data

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19 · Appendix: Opex and EBITDA

Appendix: sources

  • Filing: Wayfair Form 8-K, Nov 4, 2026 (accepted 7:04 AM ET) — https://www.sec.gov/Archives/edgar/data/1616707/000161670726000195/0001616707-26-000195-index.htm
  • Earnings release, Q3 2026 (Ex. 99.1) — https://www.sec.gov/Archives/edgar/data/1616707/000161670726000195/a2026-11x04ex991.htm
  • Q4 outlook: earnings call transcript, Nov 4, 2026, via Investing.com — https://au.investing.com/news/stock-market-news/earnings-call-transcript-wayfair-beats-q3-2026-estimates-as-shares-rise-premarket-93CH-4742835
  • Q3 consensus: LSEG via CNBC, Nov 4, 2026, 7:08 AM ET — https://www.cnbc.com/2026/11/04/wayfair-w-q3-2026-earnings.html
  • Q3 consensus check: Investing.com, Nov 4, 2026 — investing.com/news/earnings/wayfair-shares-fall-3-in-premarket-trading-despite-q3-revenue-earnings-beat-4998818
  • Share price: Yahoo Finance W, Nov 3 close and Nov 4 intraday (12:34 PM ET) — https://finance.yahoo.com/quote/W/
  • Q4 outlook was given on the call, not in the release. No Q4 consensus was found, so guidance is not scored.
  • Times are US Eastern. The Nov 4 price is intraday, not a close.

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20 · Sources

Important disclosures and disclaimer

For information only. This presentation is provided for information only. It is not investment, legal, tax or accounting advice, and it is not an offer, or a solicitation of an offer, to buy or sell any security.

No recommendation. It carries no rating, price target or buy, sell or hold view, and it was prepared without regard to any reader's investment objectives, financial situation or needs.

Sources and accuracy. Company figures come from Wayfair's Form 8-K of November 4, 2026 (Exhibit 99.1) and, for the Q4 outlook, its earnings call of the same date. Consensus estimates (LSEG, Investing.com) and share prices (Yahoo Finance) are third-party data, credited on the sources page. We have not independently verified third-party data.

Basis of presentation. Figures are as reported for the quarters ended September 30, 2026 and 2025, in US dollars.

Forward-looking statements. Company guidance, consensus estimates and the watch items in this deck are forward-looking. They rest on assumptions that may prove wrong, and actual results may differ materially.

Non-GAAP measures. Adjusted EBITDA, Contribution Profit, adjusted EPS and free cash flow follow Wayfair's own definitions and are reconciled to GAAP in its release. They may not be comparable with other companies' measures.

No liability. No liability is accepted for any direct or indirect loss arising from the use of this presentation or its contents.

No affiliation. This presentation is not affiliated with, reviewed or endorsed by Wayfair Inc. Company and brand names belong to their owners.

How it was made. The deck was built with DeepCell, with figures linked to a model in the file. Readers should check the figures against the original filings.

Date of analysis. The analysis reflects information available at midday on November 4, 2026. The November 4 close was not yet available.

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21 · Disclosures

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